Why invest in New York City?
In New York!!!!
Concrete jungle where dreams are made of,
There’s nothing you can’t do,
Now you’re in New York!!!
These streets will make you feel brand new,
The lights will inspire you,
Let’s hear it for New York, New York, New York!!!
With more than 8.2 million people, New York City is the most populous city in the United States. The “Big Apple” is one of the world’s leading business, financial and cultural centers and its influence in politics, education, entertainment, media, fashion and the arts all contribute to its status as one of the major global cities. The city boasts a high quality of life, extremely high household incomes, and vast opportunities for cultural and entertainment activities.
With over 200,000 businesses, New York City has one of the world’s most highly-developed and integrated economies. The New York metropolitan area alone is home to 53 “Fortune 500” companies, more than any other metro region in the US.
New York is also a global hub of international business and commerce and is one of three command centers for the world economy along with London and Tokyo. As a result, many international corporations are headquartered in Manhattan. One out of ten private-sector jobs in the city is with a foreign company.
The city is a major center for finance, insurance, real estate, media and the arts in the United States. The New York City metro area accounts for almost 10% of the entire GDP in the United States. While the economy is well-diversified, high-paying financial services jobs account for more than 35 percent of the city’s employment income.
New York City Will Be #1 in GDP in the World in 2025
Currently, New York City is second to only Tokyo, Japan, when it comes to generating “Gross Domestic Product”, or GDP. McKinsey Global Institute, however, in their new report released in March of 2011, Urban World: Mapping the Economic Power of Cities, predicts that of the 600 urban centers throughout the world which will generate 60% of the world’s GDP in 2025, New York City will rank #1 in GDP. The report goes on to rank New York City in 2025 as follows:
#3 in GDP Growth
#6 in Total Households
#9 in Total Children
#10 in Total Population
#10 in Per Capita GDP
The McKinsey report is based on economic research surrounding the strength of cities. While we all know some of this intuitively, McKinsey research has found three very powerful rules that follow large cities, and New York City, in particular:
1) Larger cities attract the most talent.
2) Large cities attract more investment.
3) City network effects stimulate growth (e.g., large cities are always at the center of a cluster of smaller cities; these economic network effects spur growth).
New York City is the “World’s Leading City”
The Knight Frank Wealth Report 2011, prepared in conjunction with Citi Private Bank, is a guide to the world of international prime residential property and offers a perspective on the key luxury property markets around the globe. In their recent survey, respondents selected New York as the World’s Leading City. The Wealth Report 2011 ranks New York City as:
# 1 in Economic Activity
# 1 in Knowledge and Influence
#2 in Political Power
# 9 in Quality of Life
Most importantly however, Knight Frank predicts that in 10 years’ time New York City will be #1, in 2020.
New York City is a Bargain Compared with Other World Cities
Prices of luxury residential property in NYC are relatively modest if you compare similar properties in other World Class cities like London, Paris, Tokyo, etc. Knight Frank compiled the average price per square meter (and foot) for true luxury properties. Here is where the rankings came out:
|Per Square Meter||Per Square Foot|
|#9) Hong Kong||$27,300||$2,539|
|#17) New York||$22,600||$2,102|
|#36) Madrid||$10,500||$ 977|